Jurisprudentiol - Tuesday's cases

By Vijay Kumar

Legal Corner Icon — the image was hosted by the publisher and was not captured.Customs

Import of old and used Datagraphic Display Tubes - covered by Hazardous Waste Rules - Liable to confiscation and re-export: CESTAT

THE goods imported are electronic assemblies for direct re-use and, therefore, the same would be covered by Serial No. 1110 of Part B of the Schedule-III to the Hazardous Waste Rules, 2008, which would require prior permission from Ministry of Environment & Forests and since these goods have been imported without permission from the Ministry of Environment & Forests, this import would have to be treated contrary to the restrictions imposed under Hazardous Waste Rules, 2008 and accordingly the same would be liable for confiscation under Section 111(d) of the Customs Act, 1962. And the same, in accordance with Rule 17(2) of the Hazardous Wastes Rules, 2008 have to be re-exported by the Importer at his cost.

Income Tax

Whether penalty is warranted, when revised return disclosing capital gains arising out of share transactions is filed, only when assessee was confronted with adverse evidence, during process of investigation - YES: Madras HC

THE issues before the Bench are - Whether penalty proceedings are warranted, when the revised return disclosing the capital gains arising out of transaction in shares was filed, only when the assessee was confronted with adverse evidence, during the process of investigation and enquiry; Whether further, the fact that the assessee had filed revised returns and the same was accepted by himself, can efface the fact of non-disclosure of the income arising under the head of "capital gains" in the original return; Whether such conduct of assessee can be viewed as contumacious and mala-fide and Whether the application of penal provisions are not automatic and the levy itself depends upon the facts and circumstances of each case. And the verdict goes against the assessee.

Service Tax

Tax on Service by club to its members held ultra vires: HC

IT is declared that Section 65(25a), Section 65(105) (zzze) and Section 66 of the Finance (No.2) Act, 1994 as incorporated / amended by the Finance Act, 2005 to the extent that the said provisions purport to levy service tax in respect of services purportedly provided by the petitioner club to its members, to be ultra vires.

See our Columns Tuesday for the judgements